Thank you, Rick Santelli! Yep, IFO attributes this week’s political victories to his signature moment on TV on Feb. 19, 2009, when he ranted about government goofups and inadvertently fired up the Tea Party.
But the nightmare may be coming to an end. Here we are after a horrible May, June seems to be shaping up pretty well. The Walker, San Jose and San Diego victories for the taxPAYING public are just sinking in to traders. A close look at the DJIA shows that the market started to turn up on election day and hasn’t looked back … yet.
Back down to earth now, gold and gold stocks have been acting very funny. Something is going on – we just don’t know what. The “barbarous metal” closed at $1,594.70/oz, while silver finished the week at $28.53/oz. Petroleum, as crazy as gold, closed at $84.34/bbl.
Here is a possibility, Jesse’s Cafe Americain on June 8, quoting the “London Trader” at King World News:
“What happened yesterday in the gold market was very interesting. One full hour before Bernanke’s testimony, the bullion banks started selling. Over the next 4 hours, the bullion banks sold the equivalent of 515 metric tons of paper gold. This was in just 4 hours, and again, the selling started one hour before Bernanke’s testimony…
“The real question here is, how could an entity begin selling such a massive amount of paper gold when there hadn’t been any news? (starting to sell before Bernanke’s testimony)…
“The bullion banks are ringing the register at both ends, while trying to extricate themselves from their short positions in the paper market. They are attempting to do this before transparency comes in to the market. They do not want a situation where aggressive hedge funds actually get evidence that these bullion banks are naked short.
“They are concerned that if it is discovered they are naked short gold and silver, those hedge funds will aggressively target those banks. This is what happened to JP Morgan, recently, when the London Whale got caught. As soon as Jamie Dimon was forced to admit a $2 billion loss, the sharks realized they were vulnerable and came in to attack. “That has greatly magnified the size of JP Morgan’s loss. The last thing powerful entities want to see is for this to occur in the gold and silver markets.”
Jesse sees it from abroad: “Change is in the wind.”